64- 56- 48- 40- 32- 24- PPE Neighbor 16- The graph to the right shows how...

 

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64- 56- 48- 40- 32- 24- PPE Neighbor 16- The graph to the right shows how many pounds of apples and pounds of cherries you and your neighbor can each pick in one week. For example, if you devote all of your time to picking apples and none of your time to picking cherries, you can pick 72 pounds of apples. If you devote all of your time to picking cherries, you can pick 12 pounds. At the same time, if your neighbor devotes all of her time to picking apples, she can pick 32 pounds of apples. If she devotes all of her time to picking cherries, she can pick 32 pounds. Suppose initially that you (Y) are consuming 24 pounds of apples and 8 pounds of cherries and that your neighbor (N) is consuming 28 pounds of apples and 4 pounds of cherries, as indicated in the graph. Then, suppose you and your neighbor specialize by each only picking the good for which you have a comparative advantage and trade. In particular, suppose you trade your neighbor half of your production for half of what your neighbor produces. In the table below, first fill in production when specializing. (Enter numeric responses using integers.) You Apples Cherries Apples Your Neighbor Cherries Consumption without trade 24 8 28 4 Production with Trade Cherries (pounds) 80- 72- 8- 0+ 0 8 16 24 32 40 48 56 64 Apples (pounds) PPE YOU 72 80 64- 56- 48- 40- 32- 24- PPE Neighbor 16- The graph to the right shows how many pounds of apples and pounds of cherries you and your neighbor can each pick in one week. For example, if you devote all of your time to picking apples and none of your time to picking cherries, you can pick 72 pounds of apples. If you devote all of your time to picking cherries, you can pick 12 pounds. At the same time, if your neighbor devotes all of her time to picking apples, she can pick 32 pounds of apples. If she devotes all of her time to picking cherries, she can pick 32 pounds. Suppose initially that you (Y) are consuming 24 pounds of apples and 8 pounds of cherries and that your neighbor (N) is consuming 28 pounds of apples and 4 pounds of cherries, as indicated in the graph. Then, suppose you and your neighbor specialize by each only picking the good for which you have a comparative advantage and trade. In particular, suppose you trade your neighbor half of your production for half of what your neighbor produces. In the table below, first fill in production when specializing. (Enter numeric responses using integers.) You Apples Cherries Apples Your Neighbor Cherries Consumption without trade 24 8 28 4 Production with Trade Cherries (pounds) 80- 72- 8- 0+ 0 8 16 24 32 40 48 56 64 Apples (pounds) PPE YOU 72 80